Lotus Technology Co., Ltd. ("Lotus Tech") today completed its merger with Special Purpose Acquisition Company L Catterton Asia Acquisition Corp, marking its listing on the NASDAQ under the stock symbol "LOT." Lotus has secured financing commitments exceeding $880 million from global investors, existing shareholders, and strategic partners through a private investment in public equity (PIPE) and convertible bonds. This ranks as one of the largest financings related to a Special Purpose Acquisition Company transaction since 2023. According to investor relations documents released by Lotus Technology, the post-merger enterprise valuation of the new Lotus Tech is approximately $6.8 billion.
Feng Qingfeng, CEO of Lotus Technology, said, "We are delighted to announce Lotus Technology's successful debut on the NASDAQ following the completion of our business combination with LCAA. This marks a pivotal moment in the company's development. We look forward to accelerating our business growth as a public company and partnering with L Catterton to lead the electrification transformation in the global luxury pure electric vehicle market."
Chinta Bhagat, Co-CEO of LCAA, stated, "Our partnership with Lotus Technology is growing stronger, and we increasingly value its mission. Leveraging LCAA's deep consumer insights globally and our strategic collaboration with the LVMH Group, we will continue to jointly build this luxury pure electric vehicle brand. Lotus Technology's listing on NASDAQ is a significant milestone in its development journey, and we believe Lotus Technology will achieve more commendable accomplishments in the years to come."
Lotus's listing is not only the largest Chinese concept stock offering in 2024 but also the largest Chinese concept stock listing in the United States since July 2021-marking the largest IPO in 32 months for Chinese concept stocks.
Listing on NASDAQ will inject significant momentum into Lotus Technology's development of new generation automotive technology, provide strong support for expanding its global distribution network, and help achieve the company's goal of increasing the number of global stores from about 200 to over 300 by 2025.
In July 2022, Lotus's global intelligent factory was completed, and the ultra-luxury pure electric SUV Eletre rolled off the assembly line. Lotus Eletre fills the gap in Wuhan's ultra-high-end smart electric vehicle market. On January 18, 2024, Lotus announced the listing of its EMEYA division, with the Chinese product name "Fanhua." In addition, Lotus plans to launch two more pure electric vehicle models in the next two years.
According to the announcement, Lotus had revenue of $130 million and a gross profit margin of 4.7% in the first half of 2023. Lotus expects revenue to reach $4.8 billion to $5.2 billion in 2024, with a gross profit margin of 17% to 18%; and revenue to increase to $8.2 billion to $8.6 billion in 2025, with a gross profit margin rising to 21% to 23%.
